xjames Posted October 19, 2009 Share Posted October 19, 2009 A well known english agent in the dordogne is refusing to return a large deposit of mine-the bank turned down my application for a mortgage after 3 months prevarication on their part.So through no fault of mine he is trying to get me to 'compensate' the vendor for the non sale.I will start the legal route to recover as my lawyer has no doubt that I will be successful and they will pay costs and interest in the end.But this could take time of course-and money.Has anyone had similar experience recently with banks/agents/vendors? Link to comment Share on other sites More sharing options...
woolybanana Posted October 19, 2009 Share Posted October 19, 2009 Agents are not allowed to hold money, are they? Link to comment Share on other sites More sharing options...
Tony F Dordogne Posted October 19, 2009 Share Posted October 19, 2009 Why on earth does the agent have the money and not the notaire. You may owe the vendor is you didn't have a clause suspensif in your original agreement but the money should have been channelled through your notaire. Perhaps you need to ask your lawyer why the agent/notaire didn't follow the usual procedure, unless of course you - on your lawyer's advice - agreed to do something putside the norm. Link to comment Share on other sites More sharing options...
Sunday Driver Posted October 19, 2009 Share Posted October 19, 2009 Immobilers routinely receive deposits on the basis that their carte professionelle includes mention of 'transactions sur immeubles et fonds de commerce'. Link to comment Share on other sites More sharing options...
Cat Posted October 19, 2009 Share Posted October 19, 2009 Was it mentioned in the contract that the sale was subject to you obtaining a mortgage? Do you have written proof that the mortgage was refused?If the answer to both these questions is yes, you should be in the clear. Link to comment Share on other sites More sharing options...
P-D de Rouffignac Posted October 19, 2009 Share Posted October 19, 2009 Without knowing the precise details, such as the wording of your 'compromis de vente', it is difficult to advise precisely. But in general, unless otherwise agreed (eg in a 'clause suspensive') you have 7 day 'cooling off' period when you enter into the 'compromis' and by agreement, this is extended to around 6 weeks, to allow time to negotiate, be offered and subsequently accept a loan or mortgage, in the event you are not paying cash. During this time, you must demonstrate due diligence in securing the finances necessary to complete the purchase. If these conditions are not met then the agent may be entitled to his commission, and the vendor to compensation (10% of the sale price).As a rule, I advise clients to have funds in place or a firm offer from the bank or mortgage provider, before signing a 'compromis de vente' in order to avoid situations occurring of the type described above. Some agents and indeed some vendors will not accept offers where the means of finance are not clearly evident (letter of intent from a bank, for example) because of the uncertainties that may surround completion of a transaction involving a loan or mortgage. P-D de R. Link to comment Share on other sites More sharing options...
PaulT Posted October 21, 2009 Share Posted October 21, 2009 [quote user="P-D de Rouffignac"]Without knowing the precise details, such as the wording of your 'compromis de vente', it is difficult to advise precisely. But in general, unless otherwise agreed (eg in a 'clause suspensive') you have 7 day 'cooling off' period when you enter into the 'compromis' and by agreement, this is extended to around 6 weeks, to allow time to negotiate, be offered and subsequently accept a loan or mortgage, in the event you are not paying cash. During this time, you must demonstrate due diligence in securing the finances necessary to complete the purchase. If these conditions are not met then the agent may be entitled to his commission, and the vendor to compensation (10% of the sale price).As a rule, I advise clients to have funds in place or a firm offer from the bank or mortgage provider, before signing a 'compromis de vente' in order to avoid situations occurring of the type described above. Some agents and indeed some vendors will not accept offers where the means of finance are not clearly evident (letter of intent from a bank, for example) because of the uncertainties that may surround completion of a transaction involving a loan or mortgage. P-D de R. [/quote]Wholeheartedly agree - I am sure that it would not take too much effort if, after the 7 days cooling off period to give a lender reason to refuse a loan if the prospective purchaser has changed their mind.Paul Link to comment Share on other sites More sharing options...
Panda Posted October 21, 2009 Share Posted October 21, 2009 [quote user="xjames"]A well known english agent in the dordogne is refusing to return a large deposit of mine-the bank turned down my application for a mortgage after 3 months prevarication on their part.So through no fault of mine he is trying to get me to 'compensate' the vendor for the non sale.I will start the legal route to recover as my lawyer has no doubt that I will be successful and they will pay costs and interest in the end.But this could take time of course-and money.Has anyone had similar experience recently with banks/agents/vendors?[/quote]I was once told by my notaire that you must prove that you tried all possible routes to get a mortgage and being turned down by one bank would not suffice as trying hard enough. Indeed a few years back I too was turned down by one bank with english connections after a ridiculous amount of time, paperwork and hoop jumping and was told by my notiare that I should try other banks to avoid issues with the agent and seller. I did this and was accepted in a couple of minutes by a french high street lender.I think you are not home and dry on this unless you have can prove you seriously tried to get the loan. Link to comment Share on other sites More sharing options...
NormanH Posted October 21, 2009 Share Posted October 21, 2009 On one purchase I couldn't get a loan, so the seller got it for me. I couldn't back out. Link to comment Share on other sites More sharing options...
andyh4 Posted October 21, 2009 Share Posted October 21, 2009 [quote user="xjames"].I will start the legal route to recover as my lawyer has no doubt that I will be successful and they will pay costs and interest in the end.[/quote] I assume that is an English lawyer then. A French one would know that your chances of getting your costs back are about as much as mine of getting on the next space shuttle. I don't have the experience of having a mortgage turned down but I have been through the legal process. Link to comment Share on other sites More sharing options...
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